Arthur Fuentes

The Manila Port Area and the Manila skyline as seen from Baseco in Tondo, Manila on Nobember 11, 2025.  Jonathan Cellon, ABS-CBN News'

Article (news)

MANILA SKYLINE

Jekki Pascual

ABS-CBN News

<div> </div>MANILA -- The Department of Economy, Planning, and Development (DEPDev) remains confident the country’s economy will recover in the second half of the year. Philippine gross domestic product (GDP) in the first quarter was 2.8 percent, the slowest growth rate since the pandemic.<div><a class="fr-green fr-strong" href="https://www.abs-cbn.com/news/business/2026/5/7/gdp-growth-skids-to-2-8-percent-in-first-quarter-of-2026-1007">READ: GDP growth skids to 2.8 percent in first quarter of 2026</a></div>At the Kapihan sa Manila Hotel, DEPDev Undersecretary Rosemarie Edillon said the Middle East crisis had a huge impact on the economy because of the country’s dependence on imported oil. But she is hopeful the economy can bounce back in the coming months.She said the government continues with its Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) program, which gives financial assistance to sectors affected by the fuel price hikes. She also expects growth in infrastructure spending, which can boost the economy.“As far as government spending is concerned, ang mangyayari kasi is there will be a catch up during the second half,” Edillon said.She revealed the Development Budget Coordination Committee has updated or revised the country’s growth targets for 2026. She did not disclose the new targets, saying they will have to present it first to the president for approval.Edillon added several challenges remain for the year—including the looming so-called <a class="fr-green fr-strong" href="https://www.abs-cbn.com/news/weather-traffic/2026/6/1/ph-dams-prepared-for-el-ni-o-says-nia-1546">super El Niño</a> and the typhoon season. The government said this can affect already elevated prices in the country.“With respect to gasoline and diesel, mataas pa rin siya. Pero kung hihilahin nito yung all the other items in the consumer basket, yun ang tinatry natin na huwag sana mangyari,” she added.Philippine Statistics Authority Assistant National Statistician Rachel Lacsa, who also joined the forum, said based on annual data, prices tend to go up during the rainy season.“Kapag may typhoon talagang tumataas ang presyo ng pagkain because of course may nasisira, may nadadamage na harvest at lumiliit supply,” Lacsa said.Finance Assistant Secretary Neil Cabiles also noted that there have been changes in the spending habits of Filipinos due to the high inflation. He said, “Sa cost of living tumaas talaga ang prices. Makikita mo na may lumipat most of the spending, lumipat to essential goods from non-essential.”The government officials said they continue to implement reforms to attract more investments as well as respond to the needs of the people, especially those affected by inflationary pressures. They will soon announce the new DBCC growth targets once the president approves it. Currently, GDP target for the year is 5 to 6 percent, which is still way above the 2.8 percent GDP in the first quarter.

The Department of Economy, Planning, and Development (DEPDev) remains confident the country’s economy will recover in the second half of the year.

The Department of Economy, Planning, and Development (DEPDev) remains confident the country’s economy will recover in the second half of the year.

DEPDev sees economic recovery in 2nd half, says DBCC targets updated

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DEPDev sees economic recovery in 2nd half, says DBCC targets updated

Jekki Pascual,

ABS-CBN News

Published June 03, 2026 09:04 PM PHT

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Updated June 04, 2026 09:41 AM PHT

Read More:

DepDev

economy

inflation

GDP

fuel price hikes

gross domestic product

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